Medical Device Outsourcing Market

The Medical Device Outsourcing Market was valued at USD 116.21 billion in 2023 and is estimated to reach approximately USD 260.51 billion by 2031, at a CAGR of 12.24% from 2024 to 2032.

Medical device outsourcing is the practice of engaging exte al organizations or service providers to execute various tasks or services associated with medical device development, manufacturing, regulatory compliance, testing, and other areas of production. This outsourcing model allows medical device companies to leverage the expertise and capabilities of specialized third-party organizations, often referred to as contract service providers or contract manufacturing organizations.

MEDICAL DEVICE OUTSOURCING MARKET: REPORT SCOPE &, SEGMENTATION

Medical Device Outsourcing Market Drivers:

• Growing prevalence of chronic disorders

The rising prevalence of chronic diseases such as cancer drives market expansion. The sedimentary lifestyle of the population contributes to the high occurrence of chronic illnesses. The majority of the problems stem from inactivity and smoking. Each year, 41 million individuals die from noncommunicable diseases. Cardiovascular problems are the most frequent chronic ailments, killing 17.9 persons each year. The most prevalent types of cancer in men include oral cavity, lip, stomach, lung, esophagus, and colorectal.

Females, on the other hand, can get lung, oral cavity, breast, lip, cervix, and gastric cancer. Moreover, the increasing need for innovative therapeutics, combined with technical improvements in medical instruments to address unmet needs in the healthcare industry. Furthermore, the growing requirement to expand product portfolios through innovations and ongoing research and development (R&,D) investments.

Opportunities:

• Growing use of Interventional Medical Devices

The increased use of Interventional Medical Devices (IMDs) is an opportunity for market expansion. Additionally, growing healthcare costs and technology improvements. The expanding inte ationalization of both major and small medical instrument manufacturers, as well as the increasing complexity of medical devices, are expected. Furthermore, the increasing incidence of many CAD risk factors, such as smoking, poor diets, and unhealthy lifestyles, is likely to drive global market expansion throughout the forecast period.

Restraints:

• The lack of skilled labour

The increased availability of service alte atives, as well as compliance difficulties with outsourcing, are limiting industry expansion. Furthermore, regulatory and legal compliance and shortage of skilled labor, are expected to hamper market expansion. The increased costs for new product development and patient care offerings are also impeding industry expansion.

Segment Overview

• By Product

Based on product, the global medical device outsourcing market is classified into finished goods, electronics, and raw materials. The finished goods segment dominated the market in 2023 and is expected to dominating during the medical device outsourcing market in forecast period, due to increase in disease prevalence, life expectancy, and the geriatric population.

• By Device Type

Based on device type, the global medical device outsourcing market is divided into class I devices, class II devices, class III devices. The class II devices segment dominated the global medical device outsourcing market in 2023. This is attributed to increasing demand of class II devices for surgical instruments and test kits. In addition, class II devices such as catheters, syringes, surgical gloves, blood pressure cuffs, pregnancy test kits, contact lenses, and blood transfusion kits. These devices pose a higher danger than Class I devices because they must be in constant touch with patients.

• By Application

Based on application, the global medical device outsourcing market is fragmented into orthopedics and spine, cardiovascular, radiology, general medical devices, others. The cardiovascular segment dominated the medical device outsourcing market with the largest revenue share in 2023. This due to increasing demand of medical device outsourcing for cardiovascular.

According to WHO, 17.9 billion people died due to cardiovascular disease in 2019, representing 32% of all global deaths. Angina pectoris, myocardial infarction, hypertension, rheumatic heart disease, atrial fibrillation, and congenital heart disease are all common disorders. The rising global prevalence of CVDs drives up demand for cardiovascular devices.

• By Services

Based on services, the global medical device outsourcing market is segmented into prototype development, finished device manufacturing, assembly &, packaging, testing &, regulatory support services. The finished device manufacturing segment dominated the medical device outsourcing market in 2023, owing to unprecedented demand for technical support pertaining to raw material and finished product testing. Moreover, medical device makers are outsourcing quality management services to medical device consulting firms in order to assure compliance and deliver high-quality components alongside safe and effective finished medical products.

Medical Device Outsourcing Market Overview by Region

Asia Pacific dominated the medical device outsourcing market in 2023. This is attributed to the presence of industry players and competitive pricing are two more variables that are expected to boost this regional market. Additionally, rising demand for medical devices due to an expanding patient population suffering from chronic and infectious diseases is driving market expansion in this area. For instance, during the first wave of COVID-19, there was an increased demand in India for CT scanners to identify pneumonia. Furthermore, low cost of products and labor for manufacturing in the region. As a result, increasing demand of this medical device outsourcing market in this region.

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Medical Device Outsourcing Competitive Landscape

In the global medical device outsourcing market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Medical Device Outsourcing Market Leading Companies

• IQVIA Inc.
• Eurofins Scientific
• Intertek Group plc
• Charles River Laboratories Inte ational Inc.
• Flex Ltd.
• Jabil Inc.
• TE Connectivity Ltd.
• Sanmina Corporation
• Plexus Corp.
• Benchmark Electronics
• Integer Holdings Corporation
• West Pharmaceutical Services Inc.

Medical Device Outsourcing Recent Developments

• In July 2021, BREATHE and IQVIA has collaborated to accelerate the early diagnosis and treatment of respiratory conditions. This strategic step of working together to improve health outcomes and quality of life for people living with respiratory conditions in the U.K. would ramp up the market.
• In December 2021, Laboratory Corporation of America Holdings, a life sciences company, has broadened its service portfolio through the acquisition of Toxikon Inc., a contract research organization (CRO). This strategic move enables LabCorp to offer testing services for a diverse range of industries, including medical devices and pharmaceuticals.
• In December 2021, the MODULAR ATP clinical trial was initiated by Boston Scientific Corporation to assess the effectiveness, trustability, and efficacity of the mCRM modular therapy system.

Medical Device Outsourcing Market Report Segmentation

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